tv Key Capitol Hill Hearings CSPAN August 2, 2016 2:00pm-5:58pm EDT
what is the most effective strategy? san water you see is the impact on children to day and of that problem and how are those solutions working themselves out? >> i want to quickly commend the great work they're doing that care and protection of public health but that toxic legacy has haunted us all the way through the 1920's through the united states and other countries around the world with though the give nations it took 57 years to follow something that we knew in the early 1900's was killing children and communities in my own
study baltimore children were dying of lead as late as the '60s but it is a powerful neurotoxin will damage a child's brain and devastate the ability to learn and competes in the classroom. seven times more likely to drop out of school and far more likely to not competes in a the workplace it disrupts pregnancy increases stillbirth and miscarriage and in effect on mortality in the lowest income communities were housing conditions have undermined natalie the health of our children and families and our ability to put people on equal footing but we have noted if we prevent lead poisoning but to render a $21 return of taxpayer
dollars which is a strong business case but the moral case is the kid can compete in the classroom to be much better citizens then minneapolis and baltimore in this is something we know how to find it we have to engage communities and the congress and local organizations and legislatures to put money into this because it works when we do it to have better law enforcement by funding into enforcement in maryland we have reduced by 99% return back to the economy you can do that around the country so that is a start. >> mayor, how are you
dealing with this in your city? this is a disperse problem with the private sector addressing lead exposure primarily is a local issue. so what you doing it in your city? >> is certainly is a bay issue also a minneapolis with 32 percent of those are people of color those have elevated the vehicle -- of levels 75 percent that we test our living in rental housing so that is very focused we have the laws on the books but it is making sure we're doing what we keenan when we do
inspections to make the homeowner the property homeowner is aware of the work that they need to do a fair going to do work by all means to work and make sure it is safe regarding lead. right now at least in minneapolis the biggest lead detector our kids the way we find out there is lead in the house because the kid has elevated lead levels be retroactively go back we have projects in minneapolis right now where we go predictably where those homes were elevated it have elevated lead levels they are still likely to have lead paint in proactively going door to door where we can predict where there is lead exposure to do the abatement that way. and those pilot projects i
put those in my budget in we test kit 65% of power to in three-year-old have been tested which is good but we need more. we're doing not reach an -- our region and education and trying to do that in ways they're going to where people are listed of them coming to us so working with those property owners is a key place for our reach a sole lead we know we have save so much money long term after dealing with lead abatement to have the $221
return of investment, why is it still such a problem? because property offenders don't want to make the investment? low income communities? priorities? focus? i would love to get the secretary's view and then turn it over. >> i also speak as a former mayor at the federal level if i had to say there is one challenge is priorities. there are so many needs out there whether at the local or state or federal level there are significant resources that go to read mediating the hazards to get the job of fully done. >> one of the things we have to understand from the mayor
is you have to set standards we should have no federal dollars that goes into housing intervention that does not say lead safe is not the standard what we found in our work around the country is by setting the standards you actually move the market that helps to bring private investment and a half to commend you on this view of inspections but it should be the standard of care of every health department in america with that instance of lead poisoning the you have a major impact you will have a baseline behalf to be
enforcement in that will not drive away investment but what we found it will bring investment. >> let's get your comments. you are working with this right now with other foundations in flint and that did help to capture the public's attention. what have you learned quirky with leaders about the challenge is essentially of water poisoning on the broader issues of lead? >> we are neighbors of flint but we're not flinch but we have been advocating to help them but to respond to your
question might in answer is we collectively dropped the ball because rates have been improving with reduction of lead levels i think people that we had taken care of it that when we started to do this in 2008 what we found it a thing in this area was had that was the most important but just in terms of those actual resources and what compelled us is we can fix this problem it is in just a housing problem a steady four years ago with get the elevated blood
levels of the detroit public school kids they tracked them now and what they found specifically was a significant impact on the standardized tests for. i would tell you i can improve your incentivize test gore without a single new classroom why would you do it? with the one time investment why wouldn't you? that was a smoking gun. but it seems to me that it is a huge opportunity that i
was saying recently that a local hospital discovered because the elevated blood levels but then it is the overlay and though hospital realized we have to do a better job. in parts of the issue is as critical as if it is it is a policy issue. it is a development issue the reason they live in these houses is they don't have a choice and that is an issue. so often they get evicted.
so all of these things are key live. stick is the collective action problem? just to reinforce the point that there is the number of ways in which we pay for not taking action on lead earlier. we pay test scores in lower test scores with lower economic performance with criminal-justice issues for making this concerted and investment in to make the point that headed is the biggest investor to address the problem that is
phenomenal this seems a little odd that this cdc isn't making this investment so had read it to this particular issue that we should just be honest that many are underfunded with sell large-scale problem what additional the authorities would head need to take that on? >> to the administration's credit it did at the level that we did get an increase of funding for these programs however that is still not enough even it either the demand is certainly not the need that we could find half of the eligible applicants.
>> that is after the increase from a couple years back but there is a number things we are doing of enhancing enforcement looking at how we can do a better job to identify what problems exist in the first place but a specific example is different standards for the inspection process with the section 8 housing it is a visual inspection we want people to do a full alert said risk assessment we bidets statutory change and you have good representatives from minneapolis working on these issues but if we can get about better about identifying where these
exist but yet additional resources it will take of bunch of levels of the public sector and nonprofits is so important because it makes it a strong third priority to bring down that level of incidence smith there was the presidential task force that called for $250 million per year investment by congress believe really have to put pressure on congress
full-size the of the i agree that lead poisoning is a need to eliminate in this country you will never get to grade level reading or graduation. in those communities that are so hard hits, unless you invest in the prevention, we also have to compel those that are mandated by the irs to invest in communities to put more into the housing stock and we have to look at health care financing through medicaid and others into how we fund this and looked at to see what the future is to help bring in private investment for
things that work that can build capitalization around the country in the last place is we have to be honest about the communities that don't have the resources to get the data where we know kids are but completely above to behind because they have no infrastructure to even make the case so if that is an issue and reporter mind to it we truly can solve another major public health threat to make the political will stay there is also room to make the case for policy makers what is in it for the people that they represent
this is a moment that people's eyes had been turned to the perils of lead poisoning if there is anything that could get from that tragedy in flint that people's attention has turned more to it but for a lot of people it is not seen as sexy let's make sure kids are healthy but the fact that it does have an impact on the education system that people try so hard in those opportunity gaps with white kids of color daff neurological development is impacted by exposure to lead and lead safe homes on our part of that cradle to k cabinet because you see the impact not just on an child
at that age but as you were referencing some of that criminal activity that b.c. on a new people tsa and 20s a heart that had the impact on their neurological development. in that is where the cdc could be helpful. this is important for a the health of the entire community in the future community to help make the case why this is so crucial. >> the people of flint their perspective is yes it is a terrible tragedy so now we will have to endure for a generation that for them
this was simply one factor of many just like what mayor koch's it can be a window of the low income communities that happens to be an insult it is the lead bullet we can fix it is a finite problem. we know where they are. and we can target our resources it isn't likely have to figure this out is why these communities don't try it is one paying.
>> and ruth iran in june bipartisanship and a half to say it is vital but as a key lever for a change but it is it like it wasn't easy issue in congress to have a national crisis but there is still incredible wrangling to try and solve the crisis so i do want to raise that larger issue is one of many challenges but in many ways it is easier challenge to fix in the low income communities but still had to remake the case of spending federal dollars?
even those that have a huge payoff that it makes sense? honestly do we think if we had these issues we would have solved the problem long time ago? it is for people who think it is not as big of a problem people are not willing to address flint today's. >> we did reduce poisoning by close to dash% in baltimore we grapple with housing conditions but in the state of maryland is coming from owner occupied properties because we drove down and concentrated on those low income communities we still have 2,000 cubic --
kids per year going into the educational system every year this is an issue in july 1992 a got congress's attention the also in part because of the cover of "newsweek" was a small blue white child said daughter of two lawyers in massachusetts and people said us to win because when a child doesn't perform well or cannot earn well that hurts all of us communities know that but this is an issue a the without the action of congress can be addressed at the local level by community actions but shouldn't be in we should not wait another
day if your hair is on fire is so flexible we need a stronger force of major leaders of the moral case across the country to bring together a national summit in december that administration that we have to turn on the jets to say you cannot come back and have another crisis about lead poisoning in be rediscover there not treated fairly by investing in housing will make such a difference in so many other areas. >> she says it better than i will never say it and she has been doing so much work
on this clearly there is more research on the link between investing and health and housing and the fact you invest in the front-end you can save on the back and so the more evidence we get the more you speak the lag who are o persuade and through the of work to build a stronger and stronger case that we do support research in that is one of the things we are thinking about. >> i can affirm that on the flight here this morning was sitting across the aisle i got into a conversation i
told him i was here to talk about lead safety and he told the story he was flying to new d.c. it is telling the story knowing he had led pate is held and others wouldn't stick to it very well he had done some standing so the page would stick to the lead paint than later he came to find his two-year old child had elevated levels of lead. he was horrified and he wanted to tell me that story and he didn't know exactly how worked but there are a lot of people in urban areas my home was built 1907 at all income levels that will face this issue that may not know they will face the issue.
in the more we can make the case the easier it will be to leverage support for those resources. >> if there is lead in the house there is likely to be moldboard dust or rodents or pesticides and if we go into that house and make it healthier rica also make it greeter so there is the opportunity of a wise investment so they end up so if you can fix one you can fix the other these are issues of the health care system in people concerned
about the environment. it to pay tribute of civic leadership and this is critical because it is a national problem. >> i will turn over to questions and in that crisis you see a concerted action by hud as well as other departments? >> across the administration we're part of the environmental task force as the agencies are working together on these issues. so even as we can now with this tool kit of the zero lead free tool kit, we coordinated with other
agencies to make sure we're all on the same page so there is a lot of good work happening throughout the administration. . . >> good to see you. so the latest is california. the paint companies were held liable for think $1.1 billion of 10 or 11 counties came together and sued the paint companies and is now going through the appeals process. in rhode island, sheldon whitehouse when he was the attorney general had a
successful suit against the paid companies -- paint companies but was a turn on appeal, is very clear that the lead paint manufacturers and paint manufacturers that go all the way back us into a more in this country need to contribute much more. it's a very difficult case to prove because the statute of limitations and who made what paint. i think on a moral compass basis been on a corporate level we need to be compelling some pretty strong contribution one way or the other t through the court system also a lot of corporate pressure on these pigment manufactures and paint companies still to be, to help us. and disintegrate its in the best interest. the more that we do repair and renovation and the more paint they're going to buy, the more windows people a bad and the more investment. they can be a win-win for everybody.
>> there was someone else over there. >> good afternoon. i am the founder and president of grassroots organization called black millennials for flint. my question anyone on the panel can answer comments is like the our great measures taken place in regards to being more practice about lead exposure. could anyone speak to anything that's take place to think about the actual impact of lead exposure in the summer happened specifically to children? children? it's great we have these innovative things that are in place, but what about the effects that have already taken place, specifically think about children that exist in flight and other areas throughout the country. >> in fletcher he have dr. mona of course so i, the best individual ago all of the things she's been saying which is true. and that is, by just taking care
of the health of those kids and making sure, really good nutrition, no exposure is important that becomes significant in a city like flint. i don't want to speak for your city but when they've lost the last grocery store and now they're getting another one, but that's a problem. kids can't get fresh healthy food. that's an issue which is true in many, many low income immunities across the country. nutrition is a vital part of i think certainly treatment. it's not necessarily a lifelong death sends but that our ways if you have very strong support both education and personal as well as nutritional, those kids have a chance. >> i would just add that i think it's safe to say that the majority of our efforts are really focused on prevention but that doesn't mean we forget about the children who do have elevated blood levels.
in fact, one of the things we're doing now is stepping up our partnership with local health departments and trying to ensure they do get better care from better testing to detect kids who have elevated blood levels, to what happens after that. so that the learning challenges that they have, other health challenges that have to be addressed. the fact is this shouldn't be a sense that someone has to adore. that if it's addressed to properly the next election and its potential, at least that's what we have to work towards. we are committed to doing partnering with local agencies so that they have the best chance possible. >> over here and i will go over here. >> thank you all for your work to prevent lead poisoning into treated.
i'm with the american federation of state, county and municipal employees. i'm also wondering about lead exposure in schools. we have a lot of really horrible infrastructure in schools and not enough funding to fix that and i'm wondering what kind of effort you may be involved in, or what's being done to address lead exposure in schools, not just stupid but we've all seen lead in water and there are a number of stories in "usa today" ran a big story about lead problems in water and, unfortunately, it seems the federal government can't regulate water in schools the way it regulates water in people's homes. i wonder if you could comment on that? >> go ahead. >> one of the places we have seen in schools is the lead in water crisis which actually began in philadelphia, rolled down to baltimore and many other places around school systems.
it is an aging infrastructure issue, but it is incumbent upon the maintenance standards for school truly address the paint and water issues, and so the. we have a lot of kids playing in playgrounds in urban areas and rural areas where there have been smelters, whether it is deteriorating paint. we've got of action on standards for maintenance for schools because in many of our aging cities building a new school is out of reach. being able to look at that. you know, epa does have the power to help in testing and knowing what the test results are insured to the public. we have been very loud about epa moving more quickly in disclosure of what they know to the public and directly to the public here because i think every parent has a right to know what the water safety is in the school at if there's other issues as well. and i think we recently quoted
in a publication saying that, that i think that we need a lot of. action but we also need a lot of state superintendents making sure the maintenance standards of schools are up to speed and up to snuff, the same we're trying to do this in housing. >> clarifying that, you know, a coalition of healthy schools campaign or -- >> alliance. >> i forget. she's been a real champion for this and other issues. the difficult is that of lot more i believe needs to be done in this particular area, issues about school funding and local control. it gets tricky. it's very difficult to deal with from the federal level for sure because that reason so has to be
done largely on a local level which means you have to get organized throughout the country, which is what her organization is trying to do, and others. it's not just lead but other exposures that kids have on a daily basis, not only internal to the school, whether it's from asbestos, things like that, or external exposure. we see lots of examples where schools are sited near coal ash, polluting industry, et cetera. it's certainly an issue that think deserves a lot more attention. >> someone over there. and unfortunate i think this has to be our last question. >> i was over there actually. spent on with the national conference of state legislators but i'm graduating from the university of michigan next year, the right next-door to flood. i'm so glad that you brought this to a broader topic of pollution because it's not just flip that's been affected by this. it's the residence of 48217
which i'm sure you've heard about the its southwest detroit and michigan to its the most polluted zip code in all of michigan. not only have they had to battle a week city government the way that the tattoo, but the reason why that zip code is so polluted is because big business, marathon oil corporation, lives right next-door to them. i wonder for you guys, like what's the thing that we need to improve post on poverty, pollution, big business, or your relationship with the cub? >> first of all, thank you for bring that, or highlighting that. i'm sure that we could tell that story in just about every big city, and even some smaller communities out there. it really strikes at the heart of environmental justice, and making sure that, at least i will speak from my perspective
at hud and kind of looking at it from the federal agency perspective. that's why it's so important that during this administration that we have begun to coordinate our efforts, particularly on place-based work a lot better. starting their with understanding what can we be doing on housing, what can epa be doing, what can we be doing in education, transportation and so forth to create healthier immunities, obviously working with our local partners who are always going to be in the lead but then going forward, how do we take that one step further and affect policy that actually ensures that we're going to help your neighbors out there? because some of it is specific but a lot of it is you could impact it might smarter policy. so for us what of the things we can think about, for instance, is how do we treat communities that have particular at our little health hazards when we do our formula funding, we do our home funding, we do our
competitive grants like choice or others and look at ways we can take that more into account in the future. we only have six months left in this administration, but you can bet there is a lot of thinking going on in terms of how we can be smarter going forward based on everything we've learned over these last few years. >> a great ending to the discussion but i want to say one last word, which is that we at c.a.p. work on a lot of intractable problems come and school readiness, et cetera, poverty. it's actually refreshing and frustrating to work on a problem that has sort of an easy pathway to success, but yet we still difficulty doing it. but not for lack of trying from everyone in this room. i particularly want to thank the secretary for your leadership on this issue, your focus and
>> now from last month national governors association meeting, a discussion on food and agricultural policy with agriculture secretary and former iowa governor tom vilsack. he talked about his department programs aimed at helping rural communities to develop sustainable economies. [inaudible conversations] >> okay, ladies and gentlemen, i think we're ready to begin. want to welcome everybody back to our beginning skier for
saturday for our events. we've got a great agenda and so we certainly welcome everybody and i hope you enjoy the discussions we are going to have. again welcome back to the governors. i know some are on their way here, and, but we welcome all of those were here. may have been too much late night partying out there last night. we appreciate the hosting here, governor brand said, thank you again. it's been a great opportunity for us to be here in iowa. as we get started today let me just mention we will be joined by some distinguished guests that we have you with us. we're grateful to have been here, and we will be talking about agriculture and food and the growing economies in the field to the plate is the title of the agenda here. no better place than that in the great state of iowa.
the good news is we have to iowa governors with us. one former and one current governor. they are both called terry branstad. [laughter] as the one speed we also the former governor that is secretary of agriculture, tom vilsack. >> i'm going to get to that you are stepping on my lines, buddy. [laughter] anyway, and we are honored to have joined with us secretary tom vilsack, former governor of iowa who's done a great job as secretary of agriculture and we are honored to have him here with us today. we welcome one and all. it would be a great day today. with that, let me turn sometimes overview to get a start on this program and you can lead the discussion more so. thank you, governor. >> thank you very much. and good morning to everyone. we have a very fantastic day plan today. we are fortunate to be joined by some distinguished guests
throughout the day. student art -- two stars on this link we will address an issue that is near and dear to my heart of the people of iowa. iowa leads the country agriculture and food production and is responsible for more than 7% of america's food supply. so there is not a better place for governors to come, to convene and discuss agricultural issues than here in the heartland of america in the state of iowa with two iowa governors, one former, one current, and there's also no better person to lead the discussion i guess than myself. so i've honored and proud to do it. spent if that's emotion on the floor, i will second it. [laughter] >> anyway, i'm a proud farm kid as is my lieutenant governor, and we've never gotten that far away from the farm and we are proud to promote it. so we say good morning and welcome to this plenary session
on growing food, growing economies, the journey from field to plate. i agree there's no better place for this conversation than right here. both lieutenant governor kim reynolds and i traveled to all 99 counties in iowa every year and we see firsthand how iowans have pride in going great crops. if you travel the state right now, it is really green out there. dutiful corn and soybean crops. would also raise significant amount of livestock, and we process many of these commodities and we are implement a new technologies all the time. farmers here at home and across the u.s. are vital to our economy, and to every citizen. in iowa the hard work and dedication of our farmers help the state lead the nation in the production of corn, soybeans, eggs, pork, and biofuels. these producers provide want the
11th of the nation's food supply but it doesn't stop there. also lead the nation at the number of large food manufacturers with 36 of the largest 100 food manufacturers calling iowa home. companies like quaker oats, the world's largest cereal mill, and tones, the largest spice plant in north america are based in iowa. food processing also provides 21% of iowa's gross domestic products. iowans also choose to purchase locally and support agriculture through farmers markets. either way, the des moines farmer's market is going on right now down on court avenue and it's one of the best farmers markets in the entire united states. so if you can get away and visit that farmer's market this morning, i think you'll be impressed with the quantity and quality of food, and with the friendly people that are their marketing their products.
our state is the first in the nation in the number of farmers markets per capita. simply put, iowans know how to produce, process can purchase great foods. our fresh commodities and foods are processed foods, goods and biofuels to provide nutrition and fuels globally. with the growing world population, iowa and all of our states will continue to play a crucial role in feeding this growing world population. as we look to the future, the world population is expected to reach 9 billion people by the year 2050, and we must continue to pursue advancements to help alleviate hunger. we've got a chance to see the world food prize all of last night and what we do to honor and recognize people that are working so hard to reduce hunger
and see the world. in iowa we have used research, development, innovation and a lot of hard work to build new industries and new technologies in the food area. we also know that agriculture goes beyond the fields, and advancements are found in research and development. the challenge of feeding millions of people is one that farmer's have and continue to be proud to face. they are expected to grow more food on the same amount of farmland. history has shown that farmer's have risen to the occasion and dramatically increased production. in 1960, one farmer produce enough to feed 26 people. that same farmer today produces enough feed and food come in a food feed 155 people. through this demand our nation's governors have realized the
importance of agriculture. it not only helps our economy but it also creates quality jobs and feed each of us and the people that live in the communities of our state. this session will feature a discussion on how farmers, chefs and food entrepreneurs are spurring innovation and economic development. my partner, lieutenant governor kim reynolds, will discuss how schools are partnering with business to develop a sustainable pipeline for farmers, restaurants and the food industry. as you'll see, i have to be met my match in terms of energy, enthusiasm and passion with lieutenant governor reynolds. tom vilsack who is a former governor of iowa will also share the evolution of agriculture and food and how it is benefiting states across this country.
but first, edward lee, a louisville chef and restaurant owner, will discuss the important relationship between chef and farmer come into restaurants impact on local economies. later, during our session we will meet students who are learning about agriculture innovation in high school, will also have members of the culinary arts apprenticeship program, and culinary arts community college programs from iowa that are going to be serving the governors some of iowa's quality locally produced food. we have reserved sometime during this session for you to visit with the students, so please be sure to go over and learn about their work and try some of the delicious food that they are producing. right now the students are to the right of the stage. they are working hard with pork braised with root beer and
served with curry granola. pork wontons and spicy pepper sauce, and marinated tuna with a cucumber salad your to our audience and the governors that are here, please excuse the sound of food sizzling or the smell of bacon. this is a state that loves bacon. if you need any assistance during the session, please see steven parker, the nga director of education and workforce who is seeded here at the table. with that said it is now my privilege to introduce edward lee, and accomplished chef, and our honored guest from louisville, kentucky. his culinary style draws inspiration's from his asian heritage, is new york training and is embraced of the american
south coupled with the best ingredients from local farms in louisville. he operates fine dining destination at 610 magnolia in milk would which features small plates, smoked meats and an array of the bourbon cocktails. very appropriate for louisville, kentucky. last year he opened his first restaurant outside kentucky international, at national harbor in maryland. so governors, please welcome chef edward lee. chef lee. [applause] >> thank you, governor for having me. i'm very excited to be present in front of such an esteemed crowd. usually the people i speak in front of are pretty much drunk on wine. this is a different experience for me. like i said to my two to restaus in louisville, kentucky, and one
in maryland. if i may shamelessly plug, where opening a restaurant in d.c. next year so hope to see you all there. our beautiful bit of history about me as i go through this. i'm the son of korean immigran immigrants. my parents landed in brooklyn in 1971. i was born a year later and we grew up in a very humble in the household which basically meant that we never ate out, ever. so to me food, fine dining food was something that, hold on, has always been so romantic for me. i knew by the time i was 10 or 11 that i wanted to be a chef can't be a chef, given the did know exactly what that meant. i just knew then that for me being a chef was going to be my role in life. cut through many years later i graduate from nyu with a degree in english literature and the
first thing i did was get the job getting potatoes in a french restaurant for $6.25 an hour which back then was minimum wage. so needless to say my parents were really proud of me. over the next few years i pulled away in your city kitchens to work by way up to the topic at 26 open a small restaurant in downtown manhattan. it was about this time that the idea of a very unique american food movement was happening and stood with people like alice waters, edessa piper and by the huge influence on me, she was from wisconsin. for a young chef like me we believe in the idea of american cuisine, of celebrating american food. a lot of that started with farms and employed in utilizing small farms to gather ingredients. it was a very integral part of my sort of evolution as a chef. when i open my restaurant i
started to think this is what i want to do with my career, with my identity. being in the said it's difficult to do that because you are just in the middle of a mega- metropolis. as they kept working in the city i kept getting more and more frustrated with access to farms. all big city chefs, very rarely leave new york to go to the country. that's exactly what i did. right around 2000, i left new york city for the bright lights and big city of louisville, kentucky. i went for derby under probably drank too much bourbon, and saw all these wonderful farms at all these pretty ladies and hats and dresses and i thought this is a cool place to stay for a while. what i didn't realize at the time was southern food was going to be, a huge part of my identity. the other thing i did not know
about was that kentucky was going through a major transformation. in 2000 the tobacco settlement agreement had passed, and what that meant was states were getting funds for the tobacco settlement the entity was one of the few states that actually allocates some of those funds to supporting small family farms. there's an organization called a community farm alliance that spearheaded this movement. what that meant what i got this, i got to kentucky in about 2003 and what that meant was i saw all of these farms that were growing tobacco that were now growing produce. they were growing everything from oil, walnuts, chickens can anything you could think of. for a chef like me who was disillusioned with city life, i had hit a jackpot. and so that for me was, that was the beginning of what for me was this incredible journey. i realized at that point that i
can't do my job without small family farms. .. >> >> most restaurants open end they have a concept they write the menu then they find people to meet those needs but we did opposite. we said let's go to the farmers first and ask what they have to sell ad but they need to move the and what is abundant so then we both create the food then write a man you. it may seem like a simple
shift but they're really change the way we look at food and everything about our restaurant period and what it forced us to do was it made us realize we were part of the system rather than the outside so we became in tune with nature and the farm and harvest and to is responsible for some of the success that i had but at that time there was an organization based at of mississippi getting into southern food and i was spreading my wings and when i joined the organization organization, they would align the with other chefs that were doing and thinking along similar lines. those that i had access to justice conference i would
be chefs from texas and alabama in georgette and carolina and in large part organizations like this we have now seen southern food become a global phenomenon. the idea of comfort food to be in tune with nature this is my friend travis milton that will take place it in kentucky a lot of these communities are small am part of what i want to say how we can't underestimate the power they have because they do create an influence
and i have seen that happen over the past 13 years we have so much further to go on that. one of the things that struck me was ted years ago i asked people to say where are you from the mets a bill walkie or wherever and i would say what brings you to louisville? they would say were core family and i remember in their answer the to be speechless they said you. the first time i had heard that.
the first time they had died in the car sped to gas and hotel monday just to each at a restaurant that just fascinated me. it is now well be called food and tourism that was just starting back then. but today i can walk through my eighth restaurant on any given weekend did check off and where they are traveling from new york, houston, milwaukee in it is incredible new phenomenon like iowa and kentucky where people travel to each. people don't come to restaurants just for food and we are "the social network" in the voice for
change to keep growing in understanding what the public wants from the as a chef and the restaurant. we are a $700 billion industry 15 years ago was about half of that. so we're growing at the incredibly rapid rate. as a and industry tv personalities and activists and everyone together we seething dislike the rise of the farmers' market, of organic food the call for
food transparency and food labeling all of these have have been pretty much within the last generation and so i'm hopeful we can see even more happen in the next generation what concerned me the most is i worry the most about small american farms and what worries me and the most the average age of the u.s. worker is 39 the average age of u.s. farm operator is 55. not to young people going into farming we need people to enter into the farming industry to supply
restaurants like me for what i need so what happens ultimately filters to the rest of society. the what go into the details but basically a very small triangle that represents the family farm and in a large part of the triangle is a duty both that represents what is out of balance we need to make farming attractive that they can do as a viable job with food transparency with true
getting industry for urban community that needs jobs. and our thing is to connect so we start a program where we try to get young adults ride of high-school, kids who cannot afford college to join the workforce to teach them how to be productive members of society by teaching them the restaurant industry to have the respect and honor so if we continue to do that, we can see more
restaurants to can purchase more farm products so at the end of the day not offer more food but better food. and as it is hitting with the industry right now we want to see better things not just more. we saw four young students going from unemployable nobody would give them a job to a year-and-a-half later they were both all salaried people working in
restaurant. the next phase is we're opening another restaurant in the little as a tutoring mentor ship program to work under my a tutelage and then to go out as productive members of society. thank you very much for having me and i hope piquancy those next generation of chefs and i want to take this to a bigger level. [applause] spee vicki is the visionary an entrepreneur to make a real difference in this world thank you for sharing your vision care reynolds
serves as the 45th lieutenant governor in the state of iowa reelected 2014 and attended governor reynolds works tirelessly to promote stemmed -- stemmed glasses and making a difference in those efforts that have gone from nowhere to one of the leaders of the country and focusing on underrepresented students and she is on the council from the state of iowa from the beginning when started in 2011 and also cheering the development and implementation of the statewide energy plan which will continue i was leadership in the renewable energy front for continued economic development and success.
to promote i was trade arkie issues for the al attended governor. since 2011 she has helped to attract more than 12 they dollars a private investment to the state and has led trade missions to europe, south america and southeast asia to promote iowa exports and encourage investments in our state. she will also lead a trade mission to uruguay and argentina this fall. she presently serves as the chair of the national lieutenant governors association, a native of st. charles where she grew up on the farm is proud of her small-town roots. she and her husband are proud parents of three daughters and eight grandchildren. [laughter] the speakers who will follow lt. governor reynoldses knows stranger he -- tom the
sec is the 30th secretary of agriculture to connect farmers with the is central and with the rule council and a gauge with first lady michelle obama with of let's move initiative. prior to his appointment as secretary of agriculture for the neck estates he served two terms as governor of iowa and served in the iowa senate and as mayor of mount pleasant. he and his wife have two grown sons and four grandchildren. please join me to give a warm welcome to our next two speakers. [applause] >> you certainly know you are in the midwest and iowa when you walked into a conference room and it
smells like bacon. i had the honor of having secretary bill sack he was my eighth mayor and while we lived there so we have known each other for quite some time. we go back quite a ways. beverly it is impossible to underestimate across the nation isn't all of that all great food comes from the farm and it is that food tourism across the nation does the governor indicated at the des moines farmer's
market so what i that i would do is how agriculture and food production really shaped the i let economy with a focus on education and training need to grow that human capital pipeline to make sure we have that talent in to the significant policy challenges that each state space now more than ever to our students as well as teachers are trained to meet the demands we see technology continues to improve we must focus on education and training to give us the tools that we need with the challenges that we face. we know that high a quality
science and engineering education is a vital part of those challenges and stem is critical to read that moral imperative that is projected to be 9 billion by a 2015 in the major component the we can better utilize the resources and it will help us and those provisions and to move back to the farm and helps us to develop a just the very important issue of water quality i am proud to say i was a national leader was done education because of the vision and that commitment of the members to
an advisory council it is a tremendous bipartisan effort i cannot think of a legislature efa appropriated significant funds every year he built into six regions with regional managers better champions as well as a vice records they have embraced the opportunity they have been instrumental from the very beginning to sit on the executive board and there really has brought in industry and business together sharing what the
expectations what the workforce was like we have a dynamic executive director but today this step council overseas initiatives that we see to make a difference and that is probably the single biggest coke is that we have the high quality stamp -- stem education programs and then after school programs and educators across the state can apply to utilize those programs and is and was to increase student interest to make sure no matter where they live they have access to the great programs we want to make
sure the kids as southwest iowa had the same opportunity as the largest districts so it is fun to see it grow in the enthusiasm and to participate with organic growth in the last school year we could actually but there was 100,000 students through the advisory council we will not stop but those steps education programs they range from how preschool his son, engineering applications kidder in through 12th grade while we continue to look for new
initiatives and we just implemented what we refer to as the council of stem best program business in teaching students and teachers that is creating a new school to business partnership as industry plays an important role with the real world of learning experience i had the opportunity to promote stem nationally it was an opportunity to have all those opportunities available food processing or the bioscience to talk about how we engage the data understand those opportunities how critical it is with the obligation of the world's population and
how do we communicate that blunt - - better? we have seen results so it is all about accountability and then measuring to make sure we're doing the right thing that that stand - - stem initiative that decisions that have participated they see their scores increased six percentage points that we have seen five percentage point increase in reading according to the of peers and that was measured through standard testing. providing more equitable access opportunities that is critical to students interested and achievement
of our share of minority students with the council stem program to me you're the sheriff those students are involved and that is one of the number one priority is of the under representative and underserved in reworking diligently to make that happen when hundred thousand students had the opportunity to participate were almost every single school district to have some exposure now we're working on ways to scale back so they have an opportunity nationwide state leaders are moving stem education to the forefront and just last month it was
announced a alerting initiative to increase access interested in computer science of he was highlighted for that great work but the focus to a light on those workforce needs another great example to establish a multi sector stem education alliance so they're great things happening in washington also. population growth with rising incomes the pressure of productive agriculture earthly and high into the demand for quality and quantity of food in the bioscience industry requires the best problem solvers to address those issues and that is why governor branstad and i it was the
curriculum for the education that we've referred to and it is an increase based hands-on problem-solving approach to understand how agriculture can change the world to do that. the program supports teachers him professional development as a big part of that as the program of peered entering it is also a great example of the public-private partnership providing education that the lines with agribusiness and we have been able to support that stem council dupont
pioneer farm bureau 34 case certified teachers that have taught almost 2,000 students in the kids are right over here in iowa there are 3,000 members josh would tell you that to play a key role with 15 new chapters as they are participating and we love to see the growth of that and to demonstrate those activities to stock about
those commodities with soymeal texture to examine the spread of nutrients through sources. so case offers nine corse says nationally with the progression of complexity including high-level research and a lot of kids will tell you it is more rigorous than some of the other class is so bad is exceptional also. it is exciting to see the momentum and the energy from the stand advisory council and you all know this but stem provides students with those communities and skills that they need with those opportunities to work with
business partners and to meet the real world needs and also for teachers to do externships it helps us to meet the need for those employers that we provide that talent pipeline it isn't just science technology engineering and math it is a way of life and way of learning and rode to the future and to see all the great things they are doing and though they will look forward to be with you to showcasing what they have been working on. the key for the opportunity to do talk about the stem activities taking place is in iowa and trust to turn it over to our former governor
of coalsack. [applause] >> it is great to be home in terms of violence and the national governors' association old friends and new friends the way to state governor branstad with the gracious reception at terrace hill is good to get back to the old homestead i like the new reflecting pool and i appreciate the fact back to avoid the lieutenant governor is doing they are incredibly bright and articulate young people who care about agriculture in the urban centers as well he don't think of it as there were all approach but of the 600,000 ffa are located in
cities because d.c. the expansion of the opportunity all over the country but i want to give practical and vice in the feel little intimidated you have to the great entreprenuers gary you were a terrific business person coming from colorado even had a restaurant here in des moines that i would frequent and terry mcauliffe of course, a well-known business person as well but there is a tremendous opportunity in agriculture and regional food production and i hope i can make the case that all the governors here today as part of the strategy to rebuild a rural economy historically it has been extraction we extract
things from the land and we sell them here and everywhere but we're changing the dynamic from the extraction and economy to sustainable one and it offers hope for those who want to work and why is that important? that role america represent 16 percent of the population of 40 percent of the military it is incredibly important that we preserve the integrity there is a value system important to this country. how to redo that? governor branstad and governor reynolds made a point of production of agriculture specifically the ability to export to other countries and talking about
trade and trade agreements i want to announce a new opportunity this is an opportunity i have been there twice we are now announcing we will have a physical presence a usda official in in cuba of working with the state department in terms of opening opportunities of trade and agriculture there is a 1.8 billion dollar market now today we lose the opportunity of the e.u. to let american competitors there is no reason if we can't get the embargo lifted so we are focused on culture and trade as well but we complement that with conservation into the ecosystem markets which to invest in it and
conservation for regulated industries now we see hundreds of millions of dollars developed in the ecosystem markets that bio based economy is something we understand where it is a fuel production or energy production we are extending that beyond fuel and energy to biochemicals and biomaterials. it is a $364 billion industry that places for a million people in readjusts getting started to transition from a predominantly fossil fuel based economy to one that balances with the plant based economy. tremendous opportunities for your role areas. -- rural areas. the lieutenant governor mentioned schools. recently we have done $20 million of grants to over tutored 95 schools to save you know, what is
grown and raise around your school district repurchasing from local farmers the giving the opportunity not to compete in the commodity based market? that doesn't create that opportunity we want those people to stay in business so you can set the price you don't have to worry about the chicago board of trade. but to date over $790 million is purchased by local schools love within 150 miles so every governor should be thinking about working with the department of education and economic development teams to figure out how you get your schools to think about what is grown and raised what can we do to
help them sell to us to feed our children to keep that in local economy. that is just one opportunity we started the job it was roughly a $5 billion industry and it is projected by 2019 to go at 20 billion. why do 162,000 farmers participate? because those that want the product there are farmers markets pretested increase because we are investing in the farmers' market invent -- to promote the farmers' markets we have seen an increase that is now 9400
and here is what you need to know. 6400 now takes a nap or electronic benefit cards and provide opportunities and will let you buy another $10 on us it is a tremendous opportunity farmers' markets or form to school it is said aggregation center where locally produced food can be processed and packaged and sold bse and the doubling it is the average of a $4 billion business governor branstad has been to a lot of small towns. i have.
i will tell you if you can employ 20 people that is a big deal indication the something is happening in these jobs are pretty good paying and they provide that opportunity. we are helping those smaller farmers get credit with the new micro loan program a $50,000 loan up at seven years you don't need the experience to get the larger essay loaded is seven years with low interest-rate to get people started, at the growing season that everybody has the benefits but in i we actually have winter. [laughter] and a you celebrate winter in colorado but we don't have the mountains. [laughter] but we can extend the growing season.
[applause] >> thank you for sharing with us the work they're doing now we will open for questions the winter lasts a question to chef edward lee the vision you have a what you have been able to do as a food entrepreneur and i guess i would like you to share with us what can we do in terms of policies to encourage and support the interaction between the
small producer in the restaurants and work-force development is keep whole thing about finding people in the inner-city but now can get us start in the world of work so share your thoughts howdy as governors can facilitate and encourage what people like you are doing? >> that is great to hear. the most pressing thing is to give small family farms access to different retail outlets whether schools, farmers markets, a prison, wherever they can sell their food i know a lot of farmers in kentucky and what i hear from them of what is we are farmers in
the want to continue we're not salespeople we are not marketers if we have to spend half a day at a farmers' market selling our product that is half a day we're not on the farm producing so there are small level csa or people who are willing to help farmers are not marketers are salespeople are business people they form and the more we can allow them to concentrate on what they do best and as legislators to create programs or connectors to the rest of society those who live in rural communities don't necessarily understand or know those urban areas they are not experts of the urban communities need or want and
there is many people from all sides. >> you are in the state that had the first food state policy council that i established read -- and i was governor there is a need for that link sweet just created a program called food link operating in 10 areas around the country is essentially designed to figure out how to link the producers with those who want to consume or purchase to develop that supply chain in every part of the country 18 foundations received a little over $2 million to fund the program over the next couple of years ago to our web site to look at food link to determine where the coordinator is of your state or region. second come on our web site we have a farmer's market directory that links and
identifies where every single farmer's market is that we are aware of with usda find out where they are in your state so find out where you can use your presence to promote that directory. >> for me one last thing is trust one of the things that has been key to the past generation we have built up an incredible amount of trust between farmers not every restaurant but chefs like myself and the community so when the consumer comes i'll have to show them the evidence or the receipt they trust me to do the right thing and with the restaurant industry being so popular, like any business people try to take advantage so one thing that is important for me going forward is food labeling or food sourcing and
transparency so we continue to retain the trust of the consumer. worse case scenario in the booming economy the consumer no longer trust the restaurant for what is coming out of the farms so whatever we can do to retain that trust is key. >> very good spirits' this was a very informative panel thinks for coming to present mr. secretary you specifically you have been to virginia lot we join you at the opiate conference a want to congratulate you for all the work you're doing on that also in virginia the work of first lady because of working with you to a half million more children in virginia had access to a breakfast it is truly extraordinary you end your team have been able to do
working with usda virginia is the number one exporter to cuba so now i look forward to the other side for cuban cigars. [laughter] but my question is a call these great programs within new federal budget coming up bin the discussions of where do we go where you see agriculture funding that we rely on in the new current climate in those new programs we could avail ourselves? >> that is a great question the farmers market promotion and program the local and regional food promotion program those are all within the farm belt so funding has been provided through 2018. we're operating on an operating budget of less than when i became secretary of that is unfortunate i'm
hopeful the governors will be engaged to encourage members of congress to better support the members of agriculture it has been seven and a half years operating with less money but the program money is there and we are finding creative ways to leverage resources and in this space chef we have invested nearly one million dollars of the local and regional food system you can find all of this information in your stay with these investments are taking place i know you have an easy to use a tool to find out where the programs are working in your state and to get success stories to encourage others. there is a terrific opportunity and the new beginning farmer toolkit to
lead to the abilities what to access. >> so these will be available but here is the challenge. when they begin to discuss the next farm bill that will be essential we don't begin the conversation the same way we did with this one which was we have to save $232 billion is started with we have to save money you cannot address all those needs you have to scrimp and save to be creative and it seems to me the best way to start a conversation is what is the need? much will it cost? if you start with we have to save money against business
and industry loan programs against our ability it pits the interest against one another i may do a better job to support rural america and we have seen a reduction of poverty and receive unemployment come down and we have to continue to make these investments. >> my thanks to the panel for this discussion my question is the growing economy and many farmers are concerned about those imports their hurts their
economy with those products with nafta and the trade agreements with international trade being what it is, what is the future for agriculture when we employ more products from other countries? but over the last 50 years we have had a trade surplus so we sell a lot more to the rest of the world the efficiency of agriculture to put a finer point on that the year that i was born three today we have seen a 170% increase on food production in this country
to put stress and strain of those communities to figure out what we would do with those $22 million farming that don't have to essaouira creating new opportunities. >> i am not challenged by imports in the sense we have a trade surplus the best food in the role the safest food the most affordable food and a supply chain that is very consistent and very stable for cry will take a there is an emerging market opportunity for us as we have this conversation about trade here is the statistic that you need to know today asia is home to 530 million middle-class consumers the people who want to buy american products five under 35 million in the next 15
years that will be 3. 2 billion that is 10 times the population of the united states of america why would we want to do business with those people to have that opportunity to sell this product that we have we will grow more and have opportunities of what we're doing now to broaden that opportunity with big or small or medium-sized but if you're going to trade and say we have to have a science base system more rules based we cannot make political decisions if everybody is on a level playing field then you have to play by those rules that means a somebody can make the case to bring something in for choice and competition and less cost this amazing array of what we have is a result of our ability to trade i cannot
help but say this is as an arranger question it is important for governors to recognize every single one of us that is not a former it isn't because we have delegated the responsibility to feed our family to a relatively small american they did such a good job never had to think twice about providing for our own family that is a credit to that capacity of this economy in results in having us going into reverse restored with amazing choice we walked out and spend roughly 10 percent of our paycheck on food comparing at 2025% of nations which means we have greater flexibility to buy consumer goods that are being purchased by a understand the concerns but in the agricultural space we are winning in trade.
big time. >> the governor has a question. >> secretary coalsack in 2008 he briefly ran for president the only mayor of the major american city to endorse him. >> the mayor of any city. [laughter] and as much as you have done the last few years as a rare lifetime maya very grateful. natalie for colorado but every where. one of my favorite people in colorado is temple brandon -- brandon and you have worked together how you slaughter animals in the importance of that with the quality of the meet could be
taken of minutes and comments on that because it is so fascinating. >> i got into about 67 years ago as part of an education i went to a food processor in kentucky and let me work there on the weekend so i am bitterly spent a whole day slaughtering p.i.g.s. and learned an incredible amount it is a catch phrase farm to table it is very cute but we may never say farm to slaughterhouse but that is how the process works and we turn a blind eye because it is an uncomfortable thought but when we start to think the death of an animal is so incredibly important to the overall product that we get i really got into a temple
was doing and for much bigger discussion we have to care you can spend one year raising a beautiful cow and ruin in the last 15 minutes by improper soldering practices and the general public is never aware of these one generation ago it wasn't on the top of people's minds with the popularity of the food movement that you see all of these issues that they're wanting transparency they want access most slaughterhouses you cannot get access it is very behind closed doors business and that is one place opportunity to say let's open up and show transparency was going on
because in my experience those i have been to given me access it is an incredible process efficient and clean and humane and i was shocked i thought i would see a horror show but it was the opposite so the more transparency the more we gain trust with the consumer for my brain and in what i do the biggest thing is that consumers trust and we feel that promise. >> guess we are ready to wrap it up this is fascinating when you mention going to the slaughterhouses we have an issue with fine texture beef i and other governors the governor of kansas and texas joined us
and we went to an operation and we saw what a great operation it was in nebraska and it was misrepresented their using a puff of ammonia to kill bacteria to have a safe and relatively low-cost lean beef product and we have spent a lot of time a lot of information got out through the internet to get the facts to people and we had to go through the processing plant to see firsthand. so your remarks about that are very important.
the more open and transparent we can be i have a dear friend who used to have a pork processing plant and he was an immigrant. he was a personal friend of the pope and had the most diverse work force slaughtering 1,000 bores but what impressed me that he literally knew and a first name basis everybody that worked in the plant and care about them and that is what is important so those that they understand that farmers really care what they're
doing with us slaughterhouses and the farmers' markets. . . ask questions throughout the agriculture demonstrations that we are going to witness i encouraged each other to take a few minutes to visit with the students and the apprenticeships that are involved in the chef program and learn about their great work. we are so proud and so excited about it.
i recently visited eastern, eastern iowa community college leadership program. and just to see the enthusiasm of those young people in the great work they are doing just excites me. we asked the members of the audience, what the governors -- let the governors go first but do we want the audience to also join us and get an opportunity to meet the students and hear about what they're doing, and also sample the great food that at --ing made. >> let me interrupt you and say that will have a governors only reading that will start in about 10 minutes. so do take an opportunity to see the students and their demonstration. we've got former governor and past chairman of the nga, mike leavitt will be speaking with us. also former chief of staff of president clinton. we've got some special guests and then reminder to everybody, be back here at 1:00.
we will have the great privilege from hearing from former speaker of the house nancy pelosi. we've got some important things to do so don't waste your time. >> okay. great job. [applause] >> today on q&a, aviva kempner talks about her documentary on the life of american businessman and philanthropist julius rosenwald who was best done as part owner and leader of sears roebuck and company. that's at 7 p.m. eastern time. tonight on booktv, summer reading picks starting at 8 p.m.
>> all this tonight on booktv prime time on c-span2 your. >> more now from a summit meeting of the national governors association. a panel discuss threats to state and consumers and how cybersecurity impacts infrastructure. also virginia governor terry mcauliffe talks about initiatives he plans as the incoming chair of the national governors association. >> now it's on. welcome to our closing plenary session. we are honored to have you all here and thank you for your attendance. we have a special gift that will be introduced shortly as we have a discussion on cybersecurity.
and again our guests and sponsors we thank you for your participation this national governors association conference. and while i'm talking about that let me just say that the chairman of this great organization, it's an honor. terry and i were talking earlier that this is a great organization doing some wonderfully good things for our country, for our respective states and it will be an honor for me to service your chairman this past year and looking forward to having terry take on that responsibility of opportunity this next year. i have come to appreciate that in this chairmanship role the significant help we get from our nga staff, kind of the unsung heroes that sometimes our behind the scenes that we don't see all that they're doing and get a make things run smoothly and on time and help us as governors look better than probably we deserve. i want to thank the national governors association staff, the
bipartisan effort that we have here, the advice that comes to us from them as we sort through a lot of material is very impressive. we've ha had productive meetings year after year for those of us who've been around for a few years. this is my seventh year, and i've never missed a meeting. i enjoy coming. associate with great confidence and upper country. learning from each one of you from our special guests that come from time to time and give us their expertise and counsel. and so i'm a big believer in this organization. i want to thank scott patterson. where did scott ago? what our new executive director who's come with a mandate to raise the awareness of this organization around the country and help us have a larger poor portfolio, more impactful when
it comes to discussion sugar i'm a big believer in states and the roles that they play and, frankly, i believe the states are as i said many times, the states of the best hope for america in getting things right and helping us get the country going and in the right and appropriate direction on behalf of the great people of this country. i appreciate the support with that and i know governor call it is going to continue in the -- governor mcauliffe will continue in the same legacy. he understands the significant important role states play. i know we will turn the reins over to him in good hands. so with that i would like to call upon larry job and who is our nominee committee chair to come and report on the nominating committee. so, larry? >> thank you, mr. chairman. on behalf of the nominations committee, which includes governors baker, hutchins center, hassan and tomlin, i'm pleased to present a slate of
nga office of an executive committee for 2016-17. for membership on the nga executive committee, governor malloy of connecticut, governor bullock of montana, governor nixon of missouri, governor branstad of ohio. i meant iowa. what a big blunder that was. [laughter] our great post here today. government rory of north carolina, governor hassan of tennessee and governor herbert of utah as immediate past chair. and for nga vice chair, governor brian sandoval of nevada, and for our next nga chair, my good friend and neighbor to the south, governor terry mcauliffe of virginia. chairman herbert, of the health of the nominations committee i moved to is outstanding slate adopted.
>> thank you. we have emotion on the floor. is there a second? second? any discussion? hearing on all those in favor say aye to. the motion carries. thank you very much, larry. appreciate your good work. as long as we, before we turn the gavel over to our new chair, i got to make some recognitions of those who are leaving their service with us. and just trying to check to see who was here, but those who are not with us, but this is their last meeting as they now exit office, we have governor jack markell and jack dalrymple and peter shumlin, jay nixon. we have an icy maggie hassan.
she's leaving, too. i think she's running for the senate as i recall. are already. his parole rate your? i heard he was your individually. girl rape tomlin, west virginia -- girl rape tomlin. governor padilla. right there. we have a plaque for you. on behalf of the national governors association we appreciate your service. governor padilla has been involved in a lot of great things in puerto rico and we all know the challenges you face, governor. one of the reasons he's not going to be with this is because he is stepping down voluntarily, not running again, to see if he can concentrate on helping get puerto rico's economy back into a healthy condition. that's true sacrifice that that's true surface and we are
honored to have one of our colleagues here, national governors association. we wish you well. you've done some great work in puerto rico not only as governor putting his prior work as transportation and utilities and things. we will miss you being here but we offer that to you as a token of our appreciation to you. >> thank you. [applause] >> okay. i think we have the opportunity, i do know if this is supposed to be the one i and to you, the gavel. terry, you are in charge. [applause]
>> i'd like to a map of all the governors present this gavel to recognize the service of gary herbert has been an outstanding chair of the national governors association. i can tell you personally i served as vice chair. we built such a strong, strong friendship. it shows the bipartisanship works everything up for the national governors association has -- he's been a gentleman to all. is listen to all of our ideas and i got a chilly come has been a great leader. so governor, on behalf of all the governors of the national governors association i would like to present to you this gavel as a token of our appreciation for all of your outstanding work for the nation's governors. [applause] >> thank you. >> thank you very much. terry would'v will do a great j. you are all doing great jobs. states are the best hope for america.
keep up the good work. thank you. [applause] >> thank you all today. i canno cannot tell you how honi am to become the new chair of the national governors association. i'm also honored that brian sandoval of nevada will serve as our vice chair with me. we are going to make quite a team working together, brian and i are committed to making sure that the role of the nga's influence imports all the governors across the country is recognized as we embark on a new administration coming in, beginning of next year. we want to make sure the governors are at the forefront and the new president-elect will meet together to talk about issues of joint concern between all of us. one of the ways i do plan to move the national governors association forward is through my initiative, which is meet the threat states confront the cyber challenge. it's important for all of us. this initiative will highlight an issue that i've been focused on since my first as governor. cybersecurity.
in addition to providing states to keep resources that they need to meet this threat, my initiative will vote on the strong work of the nga resource center for state cybersecurity, and effort i have chaired for the last year and a half with governor rick snyder of michigan. i know firsthand my work in virginia that i hit this issue right as soon as i took over as governor of the commonwealth of virginia. just to give an example, so far this year since january 1, virginia has had 53 million cyber attacks that is a cyber attack every four seconds. that is 300,000 cyber attacks a day. we successfully blocked 4422-mile attacks and stop very serious side effects that hit the commonwealth of virginia. we know both domestic and foreign actors are continuously probing and infiltrating our
critical infrastructure to access sensitive information and our systems, that if they are compromised could have significant economic, political and physical consequences to our citizens. likewise, the continue to encrypt and attack our hospital system and data, demanding ransom for decrypting and restoring these systems and data. financially cyberthreat -- cyber theft of intellectual property and trade secrets alone has caused the united states economy over $300 billion annually. yet our ability confront these threats is hindered by not investing in our education system and our workforce development programs. we need to grow, train and retain the best cybersecurity personnel in our state. as the result we are missing out on economic growth within our state due to her inability meet the cybersecurity demand in the private sector. today in virginia i have 17,000
jobs open in cybersecurity. the starting pay, $88,000. that is $3 billion of annual payroll that we are forfeiting your that is why in virginia today we are redesigning our k-12, our high schools to make sure we are adapting to this growing need for cyber warriors. one of my very first executive orders as governor, i created the virginia cybersecurity commission. the commission held town halls throughout the commonwealth which led to 29 recommendations focus on education and workforce. economic development, cybercrime, cyber infrastructure and network protection. and most importantly public awareness. i am proud to say since establishing the commission, to be virginia has become the first state in the nation to adopt the national institute for standards and technology cyber framework. we pass legislation protecting citizens digital identities and
establishing accountability and authority now for cybersecurity in all of our state agencies. we develop and enhance cybersecurity policies and standards, and we increased the crimes at our ability to prosecute cyber crimes. we adopted an advance credit card standard for security. we increased the number of centers of academic excellence in virginia's community colleges and universities and introduced several cyber initiatives in the 2017-2010 budget including creating not only scholarship for service programs. if you'll give us to use of state government, we will pay for your cyber degree. we will put a program together for our returning veterans. i'm very proud in virginia that per capita with the most veterans of any state in the united states. more female veterans, more veterans under the age of 25 than any other state. we transition out 15,000 veterans to you. we want to make sure when they come back we can roll them right
to our cyber training and put them right back to work. unethical of our administrations to expand virginia's economic footprint in the cybersecurity sector. we already have a strong base and we are positioning virginia as an international leader in cyber. just four days ago i was in israel and they are going to make a major investment in the commonwealth for a new cyber information system. this is going on all over the globe. virginia is home to 27 military installations, the pentagon, the cia, langley and the largest naval base in the world. all of these have constant cyber attack. our partnership with the federal government is to make sure we protect our federal assets so those state and continue to grow. i am proud to say virginia is home to 650 cyber companies, the second of a state in the united states of america. that represents an increase of over 450 cyber companies and 2011. i am proud to say virginia was
chosen for a new air force cyber operations squadron which the virginia air national guard were established at langley air force base. more than 67,850 virginians work in the cyber sector, and that number is expected to grow by 25% through 2022. our aggressive approach to grow our cyber sector is a central part of our work to build the new virginia economy capable of withstanding the uncertainty of federal sequestration and budget cuts. the aim of my initiative is to replicate the work we have done in virginia across all the other states in the country so that everybody is best positioned. if virginia is out in the lead on this issue it really doesn't matter if another state isn't because as you hear from our ceos they will go to a state with the cyber protections and go into a backdoor if they want to get to virginia assets. our goal is to make sure all 50
states are doing to protections they need in order to go forward. to do that will provide governors resources and recommendations, focus on how cybersecurity affects all sectors of state government including health care, education, workforce development, economic development, infrastructure and public safety. there will also be a series of regional summit designed to educate all of your state policymakers on how cybersecurity in attacks with state government. the idea is to provide you with specific takeaways that policymakers can implement immediately in their states. we will develop an online resource library to help states strengthen their cybersecurity operations at this library will include products developed throughout the year all paint at assistance states in creating improving and fostering strong cybersecurity states. there will be templates for our policymakers that you can use as a cybersecurity strategy. we will have checklists for our
governors on critical cyber issues and a compendium of cybersecurity executive orders, many we've already done in virginia. just copy them and bring them back to your own state and push them through your executive orders and sample state cybersecurity sample documents and legislation we have had approved that you need to begin to move to do yourselves. finally, i'm excited to announce through this initiative we will launch a series of continuous podcasts featuring the leading cybersecurity practitioners discussing issues of particular importance to our state government folks. these will be hosted on the initiative website and through multiple podcast platforms that we have. in front of each of you is a checklist as you can see. you can use to begin to assess your states readiness to make the cyberthreat and to leverage the opportunities that exist in the new economy. i will not single out states but we've been working very hard at
the nga. today five states have really taken innovative leadership and they are in very good shape. 20-25 states have made very good progress. 25 states have a very, very long way to go. and my point is i said earlier, if there is a weak link in that chain it affects everybody along a chain-link. in short, it is my goal that a year from now that each one of you in this room along with your colleagues not here with us today will be equipped with answers to each one of these checklist items. promoting cybersecurity our state not only protect our critical infrastructure, it creates economic opportunities. as leader pelosi said this is going to be one area the federal government is going to spend billions and billions on. as a governor, if you're spending that kind of money i want to make sure we're getting our fair share in the commonwealth of virginia. we cannot protect our citizens without training and hiring new
personnel with the skill sets to actually protect them. that is what all of us need to be thinking about what we are doing in our k-12, good writing, computer sciences and k-12 specifically in those critical high school years. we have with us today to great leaders were going to help us frame the issue, understand the role of government as they work with the private sector to their chief executives in their own rights if they put a very important role in protecting their companies. we have two outstanding corporate is with us today. i had the pleasure of introducing susan story who is the president and ceo of american water. as you know, american water is in about 47 states it and yazidis resident and ceo of anthem. anthem is you know has nearly 100 million folks involved with that company. both of these individuals deal with cyber threats each and every day. as you know nothing is more important for human health and clean fresh water. millions of americans depend on
utilities to provide a. much attention has been paid to potential cyber vulnerabilities inherent in the electric grid, today's discussion to highlight how cybersecurity affects the broader infrastructure sector. and as you know and health care sector the entire industry is transforming how it now handles information and data. and proper cybersecurity measures are needed to safeguard patient information and to guarantee the delivery of life-saving medical services. both sectors face challenges not dissimilar from what we face in our respective states. we had to see the those who like most of us today did not have a separate entity background. yet they had to very quickly learn about this complex issue and spearhead new policies for their companies. they will offer us insights as to how we should address the issue as ceos of our states. so let's start off first with
susan, and she will provide us with little background on your company and what she's had to do to deal with these cybersecurity issues. >> thank you, governor. thank you, everyone. i would like to thank the nga, governor mcauliffe, for making this your chairs initiative. i think this is critical not just for governors, not just for the federal government, not just for utility, health care leaders, but for every citizen in this country. this is very timely, important and thank you for the opportunity to participate in this. also governor branstad, i want to thank you for having us composting us in this beautiful city. i will american water has served parts of davenport and clinton for 130 years. it's always great to come home so thank you so much. want i want to do, as governors you all know and you know this, and every speaker says this, you are chief executives but you are chief executives with thousands of responsibilities every day. but probably nothing as critical
actual responsibility to protect the people in your state, protect them from any other critical services that you have to provide, things like fire, police and health and human services. these are very serious things that people take for granted every day. but you have to think about every day. as utility leaders come and i spent 31 years and electricity industry before coming to the water industry three and half years ago, would also have to face this critical service challenges. we've to make sure after hurricanes, after ice storms, after flooding, during a drought that people other critical services they need. we work with you and your state and summit of the organizations and agencies in your states to do this. the fact is we're in this together. as governor mcauliffe said, american water has regulated operations in 16 states. we touch 12 million people through our bigoted operations. we have market-based operations, we serve 12 military
installations across the country. we also run for even different municipal systems for municipalities across the country. all in all we are in 47 states. what happens in your state matters to us and we want to be part of solutions that you are working on and be part of the answer. what i want to do for a few minutes is talk a little bit about cybercom but from my standpoint injured phillies and critical infrastructure, you cannot separate physical cybersecurity. everybody is about the internet of things and it has all these different definitions. let me tell you what it means if you're in an electric, water, gas or telecom. what that means is that our cyber is not just our systems that of customer information and employee information. it's the systems that run the greater its the systems that make sure the water treatment plants are operating to its the systesystem to make sure thingse
but the challenges are met and it's the systems that ensure the water gets through the pipes that we can of water contamination. so you cannot separate physical cybersecurity in the world of infrastructure and especially where utilities, whether it's an municipal utility whether it's an investor owned utilities like american water. so what do we need to do? one of the things we have to do? i would say from american water standpoint there's for big things as we look at this. i want to provide a definition. i'm not going to talk about cybersecurity in general or physical security. i want to talk about a specific preparation that's being done in this country today that the nga is getting involved with can which is the black skies initiative. many as you've probably heard about this but it was headed up by the department of defense, the department of homeland security and electric utility to see. back in 2013 faced are looking at what they called a black
skies the big woods is an electromagnetic pulse that takes out a grid engine of a population center of greater than 1 million people who are out of electricity for at least 25 days? how do we withstand that? what's interesting is they went through that year, they came back and said we realized the number one problem, the number one threat would be water and sanitation services. how would you have evacuations of a major urban center with no drinkable water and no sanitation services? so issues around diseases. i went and spoke to the group and they came and said we want phase two which will be released this summer, of this effort. phase two will be the water sector and fuel resources during these times. what's important about this, the uk and issue a part of this effort. again it was headed up by a consultant from the department
of defense but they very much want to get states and fall. when the report is issued this summer and want to have a checklist for public service commissions in every state in terms of what they need to make sure is happening with the utilities in the state, water, electric, whatever. this is a big effort. i want to talk about how you approach a black skies initiative at that identifies are help you with the cyber and physical security. some of the things we're doing, technology. our system, cybersecurity cannot be an adult on top of which were already doing. it has to be a part of the fiber. as we're developing the intelligent water system, which is a corollary to the electric smart grid, we've got to make sure we build of the protocol into a part of the technology. not something on top of it to make sure we monitor it. it has to be part of the resiliency of doing that so that the investment and technology is critical a discount to include
everything about physical and cybersecurity from the beginning of we go back t and make that pt of the fabric of the system. the second thing is just like the state of virginia, some of your states have been and then subsequently, we voted adopted the nist standards. we hold ourselves to the same standards of electric utilities and the greater it is voluntary for the water sector. i think as we move forward it would not be advised not to become something that everyone a provider becomes a part of in terms of nist standards. as we look at what we have to do with partnerships competitive member anything else from the comments i make today, we all have to work in this together. at american water in our states we partner with the environmental organizations, the fusion centers that you have. we partner with public service commission and but also partner with emergency planners.
we are able to states because department of homeland security because of critical infrastructure is a huge partner of ours. in fact homeland security comes in every week to our company and test systems. as simple as going to work external website to see how could somebody get him. then we take this comment and we tried to make sure that we keep our system from people being able to get into it. .. conversation among all of us. it's critical that what one person knows, the other nose,
that we have open communication on critical things happening out there. another thing i'm proud of is that what we do in american water, is not the job of our it department or even our operations department. every level of employment including myself and board of directors get involved with cyber security and american water. in 2015 every state had an exercise with information technology. then, the executive leadership team that i need, my direct reports, we took an all-day session and only i and the head of this goal cyber security what the scenario was and i spent all day with our senior executives seeing how they would react. ran somewhere, malware intrusion into our system. another thing we did was we come to our board of directors and said were going
to spend two hours walking through with you so you can see how we handle this and you will hear from joe in a few minutes about going through this and how they did the magnificent job they did dealing with an intrusion but another thing we did , cooper has developed a situation game of cyber hacking. the most incredible thing i've been through because it's real life. you divide up into two groups, one group is the hacker, the other is the company and based on what each died decides to do you have to react in real time how you would deal with an intrusion in your system. one thing i found out from going through that, it's a lot easier to be a hacker than it is the people trying to protect the system. whether it's companies or state or local agencies it was incredible how difficult it was but it was a really great exercise to go into so bottom line, i will tell you that at the end of the day we have to look at physical and cyber security and the integration of the two of those for all the critical infrastructure that you have in your state and that we have at our company. number two is it's not enough to be able to keep people from getting inyour system.
someone will find a way to get in . how will you handle it when it happens? and if we don't have that part, one mistake. if we stop them 100 million timesbut they get in once, at least in our business in water and wastewater , your business and police, and by the way in water you have to make sure you have fire hydrants for us of the fire protection also. we can't let that one get in. we got to make sure that when they get in we find a way to stop them so what i'd leave you with is i do have a call to action for the state and governors. i think there are four things we need to do together. number one, these promote communications and teamwork. make sure your agencies are working with all the utilities. make sure the utilities commission and electric, gas water, that we are all doing this together and we bring in the federal department of homeland ready. it's important that people are talking and sharing information. the second ring we have to do is we got to make sure that
we also have resiliency in our assets and infrastructure. this is not easy. from the water industry standpoint we had in many of our states the ability to get capital investment in real time in terms of every year in terms of replacing pipes which is really important but to get okay or approval to do something for resiliency you will never gets used? and from you as a state leader to invest in thingsyou don't know if you will ever use or not but it's there if you need it ? we've got to figure out how to deal with that. that's not an easy task that we have to do. the third thing we need to look at his private public partnerships. nobody can do this on their own and we all have to try to do the same thing and whereafter the same
objectives. the last thing i would tell you is we need to and us governors, we need to have a simulation exercise in our state. six weeks ago the commonwealth of pennsylvania did a black sky simulation. they brought in their 130 people at this. there were federal agencies, the military, homeland security, state agencies, all the utility. all came together for a whole day and actually did a black sky simulation. if we are faced with an extended outage where we can't get power for 25 days, how will we keep the water systems running? how will we keep the wastewater systems and sanitation services going? if we all worked on these together i think we could ensure that your citizens, our customers have a vibrant and they can feel more peaceful knowing we are ready to handle whatever comes along. >> thank you susan. [applause] phil, i think sometimes people think of health, they don't think of it as a traditional critical infrastructure but it is clear that the cyber
terrorists outthere clearly are targeting health information in and back is one of their key targets . anthem as you know which you had up had one of the largest attacks in our nations history. we have a proposed merger going on by the that every american will betouched by anson that the merger goes through. it was a big deal. i have five children, two of our children got their information taken .tell me about it and what did you do to respond to that? >> it's an honor to be here with all of you today to help plan that serves all of you 26 states totally. we are involved in a variety of health benefits engagements and whether it's state employees, medicaid service related to health tss or medicaid beneficiaries, of variety sorts we have a very deep engagement and many, many states so we take our responsibility to protect data, protect the very nature of how our members engage in
the marketplace with respect to their monitoring and managing their health status, true personal health information have to be guarded. so it was me and the ceo, incredibly troubling and quite frankly just mind-boggling that we could experience a breach of the scale that you mentioned. what i first want to say is congratulate the governor and the work in the commonwealth of virginia with respect to the speed with which you took it on as a priority for the commonwealth. leadership that's been exhibited and now the populating of state resources that hopefully you can take a lot of information in terms of your experience out to the marketplace. it's a phenomenal gift to all of the states. but share with you what we experienced. and again, in terms of understanding our company, we
touched 72 million lives in a variety of ways and the majority of it related to health benefits, balance of the millions related to a lot of specialty service around life insurance, dental insurance and so forth area we have a sophisticated it infrastructure. and in that regard we invest tremendous sums of money in order to protect the data. what happened is about 18 months ago we learned of the breach and it touched 80 million records. as you pointed out probably the largest breach in the nations history. we do know that was a state sanctioned breach. we do know that at least by
virtue of our relationship now which is very close with the fbi that we been assured that none of that data has gone to the black market and that is an amazing revelation because where it typically ends up is in the hands of people that use it for commercialized purposes and from a criminal perspective. that did not happen so we are very pleased with that outcome. notwithstanding that fact, we are very concerned with respect to the intrusion in our systems, how it happened and how now we can manage our way out of it. so let me first talk about the fact that with the growth in technology as we all though is unprecedented. now it's escalating and even greater pace with greater depth with respect to social media, with respect to tracking technology, with respect to computing technology. it is ballooning at a next financial rate so our concern and what we are mindful of is
that we are focused on both regulation and policy with respect to creating privacy and security. we are focusing on understanding vulnerabilities and the levels of risk that it presents area and finally, we want to make absolutely certain that in terms of managing the threats we still have as an endgame the use of data area that's effective for the individuals, the services that need our information with respect to health information that is used for the betterment of care delivery and health status of all of our members. so we learned i'd say three core elements that hopefully we can get a chance to talk about with respect to the depth of q and a that's going to happen in a moment. three core elements.number one, absolutely essential that we have to target advancements and
strengthening of our culture as a company. the culture is what i think differentiates the winners from losers in this space because if you've got a culture that is totally, 100 percent committed to protecting every member, every customer, every citizen, you got a running head start against vulnerability. number two is collaboration. i want to talk more about this a little later but what i have witnessed once our breach occurred in trying to engage with my peers in the industry, how i detected this sense of competitiveness, a sense of competitiveness where you've got breached but we are okay area we don't really need to share information. what you are creating with respect to our work and the commonwealth and the connectedness to the state is representative of the collaboration and startup that's necessary to get traction and achieve greatness with respect to the controls necessary to protect our society. and third, i want to make certain that we talk about
commitment. commitment is absolutely essential with respect to resource and you mentioned resourcing as one of the core elements of your effort. i can't tell you how many times i've heard that you know, i've got a budget problem. gee, i don't know that i can get the kind of commitment i need from a superior. to your point about data, and data that we now monitor very carefully, every month we have 19 million hits that we would consider a threat. and what's interesting is that now that we have on staff 250 individuals that are totally dedicated to nothing but managing the risk of cyber attacks, we've got many others so we got 55,000 employees, every one of those employees by way of training and the engagement that we expect of those individuals is monitoring their individual workspace but the 250 individuals are looking
carefully at the 19 million that then distills down to close to 5000 hits that we believe are nefarious in nature and we now have identified, it doesn't sound like a lot but it only takes one, 150 hits that are truly threats in intrusion that we think can create another breach on the scale that occurred to begin with so those three core elements really make up the difference with respect to whether you succeed or fail in the world that we, on with respect to threats that have been presented to us. so what i'd like to do is maybe just pause there and begin opening it up for questions. >> why do we go ahead and open it up to questions? senator hickenlooper and governor hoven? >> thank you for being here, i appreciate your insight
into this issue.certainly as people even though resources are people are allocated now, more governors are payingattention . two questions, one, haven't you can go your own organizations because we are in a similar situation to yourselves, we got 1 million things going on around us but finding the time and space for that to happen and second, in what places do you see that states can provide you unique and critical support? >> the interesting thing about changing the culture is the great thing about being in a water company is that our employees get the criticality of what we do. even as utility service people in just what we deliver. we are in some ways help agency because of what we do. what we had to dothough was , it's something like cyber
security is considered an it function. that is the biggest cultural issue a corporation and a mistake by human nature. what we had to do was basically show a number one, the weakest part of our company will come through an employee who mistakenly. >> on something. so once we started communicating that and i have to tell you, one thing we do once a month, our it and we have our physical cyber security as a separate function from information technology. we send out the dishes every month to every employee to see who will click on it. and then we debrief and another thing that came out of that, this sounds like a small thing but sometimes it's not the big things that get the most impact so what we found out was some of these phishes, they would have my name and email but would have an extra our in atwater and people look at it and click on it because it's this big announcement.
what we did was, every single email that comes from outside our company and our domain has a red banner right after the subject that says this email is from external sources. make sure you know the sender before you click on anything area at first our employees were like what a waste, i have to read this i read the email? they said why are we doing this? we found from some of the fate phishes they put out it was reduced 50 percent after we started putting the header on anything that came from an external domain. that sounds like a small thing but it is starting to change the culture and what it also did with our 6700 employees across the country, they are thinking about it now. there thinking about it there thinking what should i do? and the help desk is getting more calls. another thing we are doing is we actually and i think this is important, we have had a information officer and we also, one question is how do you deal with the big stuff and little stop?
we put our research, environmental and r and d and it under one technology officer and his whole row is integration of all these technologies, operational technology, not just your systems for email but the people running thewater treatment plant , connecting all that together and saying that technology is not separate from our business anymore, it's not separate from your business and state, it is the business and i think the cultural shift of getting people to understand itsevery single employee's job , cyber security is every single employee's job. if we are not where we need to be but we are continuing to put that out there. >> maybe i can even go back to the driving force of a successful organization's leadership. where they say three things, leadership, leadership, leadership. it was amazing when i learned of the breach i got with my team and the realization was that we needed to send a very
clear message to our 55,000 associates the importance of what we run up against the giants are they appreciated, they just didn't know what they didn't know about its significance. we made commitments to not only our associates in terms of bringing them on board so that they were fully aware of our responsibility as a company but also we made a commitment to our members so that we gave to them a sense of security that notwithstanding that breach occurred on our wife, we were going to take care of them. and we were going to take care of them with the kind of support and security that at least gave them some peace of mind that in spite of the breach that we would take care of their situation, no matter what it might be.in terms of how someone might use that data. so let me say that for our
company it began with the board. i immediatelyinformed the board , they now hold us accountable routinely with respect to audit insights, regular reports with respect to how management is managing the affairs of the organization in terms of security we internally now have a very educated highly expert risk management process through an it security officer. that security officer has been given tremendous amounts of responsibility and authority, not only internally but we now encourage them to get engaged on various levels of national policy engagement, state relationships and other societies like you may have heard of high trust. i trust is an organization we've been part of 2003 and
we have a variety of certifications and now we have brought them on in terms of a total engagement to get the kind of routine inspections that are necessary for us to be assured that we are actually protected as an organization. we retained mannion and mandy and is also assessing our performance on a routine basis so we've got multiple sources of certification that we are in fact sure. but all that means is that our engagement in terms of how to build a culture that is protecting our membership because at the end of the day we got incredibly sensitive, vital personal health information and the good news is with respect to the breach, no personal health information was revealed it was more in the demographic, unfortunately social security information addresses emails. that nature of information, we were very blessed that it
did not involve personal health information. notwithstanding, we now have a culture in our company that is highly protective of data and every associate is expected to your point susan to be engaged and committed to securing the organization so that they are monitoring in their space but also monitoring on a collective basis so it's cultural, cultural, cultural. driven by leaders that get it and who are totally committed to the safety of information for our members. without that it really kind of treading water, literally treading water you asked what states can do, what we can do with state and i missed some of those. we have to start communicating between federal, state, local, utilities at least on critical infrastructure i was talking about but also key companies that are there that are part of this.
simple things like having an exercise once a year. i will tell you a great trial run, hopefully we don't have this but we found during natural disaster recovery we are learning lessons about how we are not talking to each other. for example after super storm sandy in the northeast with american water we had plenty of fuel because 90 percent of our critical assets that served water to 90 percent of our customers across this country backup generation so if the power goes out we cannot water and sanitation services. will but no place to restore the fuel. the local areas in new jersey in new york and pennsylvania needed fuel but they had space so we worked out a deal and said we will provide you fuel if you will give us face to keep the fuel. the problem was we did during the recovery. but you know what?build into our emergency plans every time this cyber incident for me, conversions of physical andcyber don't necessarily have to have separate plans. emergency planning , there is a broad brush of that should
be the same whether it's man-made or natural when you're talking about critical assets. it's a little different when it's just information systems so i think the best thing is we know each other, we share information with each other and that we make that physical exercise one day a year and i think that is the best practice that we should be able to target in all of our states. >> senator hogan? >> first of all i want to congratulate and thank you collins for his focus and leadership on this issue. as most of you know, outstation maryland and virginia we surround the nation's capital and collectively we are home to most of the federal government's defense intelligence and cyber assets and collectively we got about 1500 of the top private sector cyberenterprises in our two states . we are actually our region there in my opinion the cyber capital of america if not the world but i want to thank you terry for your leadership.
i want to thank both of you for this discussion, it's been fascinating. i think this is one of the most critical importance discussions that we had at this conference, it's something everyone of us needs to focus on. i have a simple question, it's a follow the line of discussion with governor hickenlooper's question. in implementing cyber security, your efforts within your organization's, can you give some specific examples of some of the internal resistance you may have come up against and how you were able to overcome it? >> fascinating question and it's literally with respect to getting out of the gate on the most painful experiences that i had. in the sense of coming to the realization that people don't know what they don't know. that's a herculean kind of experience to overcome for a leader.
because you literally are starting with their bones, basic of getting information out and getting people on board. and then you realize you've got to establish educational models that get folks on board and develop that sense of responsibility. number two, there's a resistance to transparency. it's interesting when the breach occurred for us how many folks said you know, we got time, we don't need to go to market. got to figure this out. let's run it out as long as we can and contrary to that of human nature, wanting to maybe slow walk it, anyhow, within the boundaries of regulation, don't get me wrong, we made the decision to go to market fast and get the message out to our 40 million members by both email
as well as first-class mail in order to inform them of the breach so transparency is something you have to deal with and overcome the personal sense of threat that people have that it exposes, that they don't know what they don't know. and then i guess the last thing is the sort of budgetary considerations which is i don't have the dollars, i don't have the supports, whatever i don't half and therefore i can't. it's that old saying, if you say you can't then you won't. and i think the final piece of the puzzle as i said earlier is that this leadership project a commanding presence that this isn't going to be business as usual and the realization whether it's me as a ceo or anyone about my executive leaders, every individual lives in the shadow of the leader and from that point forward after that breach, people know that literally
job one for me to protect the company necessitates my commitment to protecting our information and so living in the shadow of the leaders, they want, they too and whatever experience i appreciate and with respect to this realm that i come upon. >> it's interesting and i'll start with the biggest one. it really is broad that is you start doing exercises you want to see how people are going to react, no one wants to look bad so say we are going to do an exercise and you mister executive vice president are not going to know what it is and we will see how you respond and then we are going to follow up with best practices to say where did we screw up, if we are not then it's interesting but culturally that's really important that we understand this is for us to learn. we don't expect it to be perfect and i think as we do these exercises i thought
about the state level and federal level, you have a safe place where we can go in and say we may not do everything but if we don't, let's support each other and look for best practices and not try to do this going through the motions as opposed to really trying to find out where we have weaknesses and that's all the way from the bottom of an organization to the highest levels and i think the same thing in state agencies. another interesting thing i mentioned that the general population of employees didn't like having extra verbiage and stop on their emails but you also have an information technology group that that's been there their bailiwick, this is what they do. that's their expertise and to say really this is everyone's responsibility, it takes some getting used to so i think as leaders to joe's point, we have to set the tone for cyber to say none of us are where we need to be. none of us are perfect. were going to mess up so tell you what, we're going to see wariness of the worst and together figure out a way to really make it right but i think if we go through the joint exercises, within a
company or across agencies and we don't go in saying we are not going to be perfect and it's okay and we're not going to badmouth, that sounds like a small thing but i worry that could be the thing that could triple effective exercises. >> joe, you talk about resourcing and in the ballpark, what you spend annually on protecting yourself and cyber security? >> you're on post breach, the investment that we had to administer was potential. hundred million plus. in order to get us up to a standard that we felt was necessary to meet the threat. onward, looking at the future we now but 50 million a year. specific to enhance technologies and quite frankly that doesn't count people. that's literally hard costs, capital deployment in order
to embed new technologies. very quickly, it's fascinating and obviously i've become a little more educated to the topic but i think i now kind of point, i know what i don't know. but what i'm learning is that technology and susan maybe you confirm this, it's amazing how predictive analytics is now having such a substantial role in proactively looking forward and helping us model on risk levels may look like so that we are getting ahead of the game and i think that's the next level of investment for us is to get more engage in predictive analytics as opposed to more reactive sort of waiting for something to happen. i know that's a simplistic way of putting what really addicting what the future may look like based on solid data that then gets us to the future faster than we would otherwise i think very helpful . >> i think that is great point because all of us as corporations, most of us have
enterprise risk management match where every year the senior executives say one of the biggest threats to our corporation and in the past cyber technology was listed as one of eight or 10. now it's actually part of every one of our identified risks. we don't make the public obvious reasons but the technology and cyber is integrating every risk so joe is exactly right, the use of predictive analytics to say how will this impact this part of the business are for you as governor, how will this impact this agency. this agency may look like they had no interconnection but they do. with your systems or they do in terms of services. where are those interconnections and in a predictive analytics to help you say this one reads for example may affect agencies where you are thinking maybe it's one or two so i absolutely agree, i think it's a powerful tool. i think we started tracking the surface of what
predictive analytics can do maybe just take a moment and get back to the core basicway of running the shop . which to your point about did we experience maybe resistance or about our efforts, it's interesting because now as ceo unable to subject to this lockout, like out of the system. and you can't imagine how much anxiety that created but we now have by way of our data analysis teams, they monitor all lockouts and when an executive for anybody is locked out of the system, they immediately consider that a threat. they go to that executive and walking through what happened, why it happened and so it's again, another heavy lift but a necessity to effectively manage real-time what's happening your system. >> after you change your
password after 30 days and forget it and put in twice and all of a sudden you are locked out, call your system administrator? i understand that. >> i understand the pain. >> questions, doctor mccrory mark governor branson? >> very quickly, what are we going to do about the talent shortage? fly and demand, how are we going to afford it? by the way, and government you all in the private sector are still all like count but it's a problem. terry i thought has done some innovating things in virginia but what are some things you are doing both for the talent now and the talent long-term . >> let me say is on point on this that we had a meeting of the council donors with the odd other day at fort dodge and they can't get folks to work for the federal government. we have a problem at the state government because in fairness to go to that private sector and you are going to be three, four times more so this is ... >> and when we do get them
they are taken from us very quickly. one of the bestways in it is to move out . and it's a huge challenge. >> it's been that way for 25 years now. it used to be i was a recruitment managerso i used to work with the old southern company . i'm just curious what you are doing unique as far as talent recruitment and retention. >> so typically that has meant what are you doing with it talent and i will go back to and i hate to sound like a broken record but for us in critical infrastructure, it's not just the people in it from a recruiting standpoint, we are seeing many challenges with our skilled collar workers. the technical professionals because now instead of turning knobs in water treatment plant, i was at our plant in davenport iowa yesterday. they got 12 screens where they are monitoring the levels of everything, water quality and everything that and the majority of them have college degrees so one of the things that we are doing is
ordering with state community colleges, state technical colleges and talking about layer, that doesn't get talked about a lot. a dozen studies about the skill sets required coming out of high school for a college freshman or someone who's going to walk rate is one of these skilled technical professional jobs, the frontline jobs. you know the immediate needs are greater for someone coming out trying to get one of these jobs as a college freshman? the map, computers, everything around it is critical so for us it's multicolored. the first thing is getting these skilled professionals, we also partner with a lot of the national labor union. we have 18 labor unions represented in our united states and our businesses and some of them excellent training so rather than re-create the training we are working with them to try to especially going to community that are underserved, have young people who they learn the skill and we can bring that in and that's and actually very effective for us to let that group.
then in terms of the it, we are fortunate because i will tell you that the millennial's coming up, there's a name for the ones behind it but i had gone up yet but they want to do something that matters to the world. they want to have security. one thing that will help states and federal governments andutilities is a lot of so what happened when their parents lost their jobs after the financial crisis . it is amazing to me only 24 and 25-year-old say i want a stable job. their definition of stable is not what it was when we were that age. but what we're finding is the ability to have state ability with your federal agency, state agency or utility but the second part we got to go to the altar is that so many of these young people have. we are getting so many recruits because they want to be part of water. they are going to be doing something that makes a difference. so the more we can talk about that, now that's not
everything but if you combine stable retirement benefits, the united states even know they're not what they used to be, there better than what a lot of competitive companies can offer along with taking a difference , we are finding at least for us that is being successful. >> i will add a very brief comment to piggyback what susan just said. we now have every year over 20 interns that we employ that are working with respect to moving up in their career so we put them on a variety of special assignments but we are constantly trying to evaluate where we are going to get talent. we can go so far as to say it's in achilles' heel in any industry in terms of finding the right talent but our sense is that we have a responsibility to train and give the career path in this profession that allows our
organization to be protected in terms of having the right talent, right place, right time. >> >> >> and new jersey for example, earlier this year did have a requirement for cyberin the framework of what is required to insure that every utility has that framework complains a don't think government can define specifically what everybody needs to do but that expectation that this happen is this is what we expect
having that dialogue is very healthy and constructive and we welcome that. speaking from my industry's perspective we have so many regulations i can turn that down to a uniform way to unify and standardize. because i can point you to so getting back to my term earlier collaborating working together and so
sense of unification it is a tremendous asset going forward i will let my insurance commissioner know that. >> but we have different regulatory constructs from the commission saddam point so for us it is more environmental requirements so we're okay with some customization so there are differences but we get to problems with the epa says one thing the state says something else that is the we are concerned about.
[applause] the other states you spend a lot of money to be safer with your states that we're only as good as the all fifth states you can back door if you want to get to the of them go do some state that hasn't. and i know that governor branstad was looking that is a little gift from us for you. [laughter]
what a memorable weekend we have had with the historic state capital with the root beer floats and though world food prize had led to a better way to end this conference to go to the greatest share of the history of mankind the iowa state fair. let's get our great governor branstad of great round of applause. [applause] >> it would not have happened without the co-sponsors these are hard deals to put together. [applause] and also our corporate fellows give them a great round of applause as well so
if they can package a few meals to help assemble salad read between 830 in the morning through 10:30 a.m. we would greatly appreciate it in just for old times' sake i calling us beating to order. >> has been a great conference takes for that contribution into the effort we have done some really good stuff. lyondell people are asking
great panel to see what we can have better relationships with the congress with the for policy and did not save dade rely to continue that opportunity with our colleagues m parker is on the federal side of the equation for the leaders of the democrat side to speak to us today with senator chuck grassley from iowa and democratic leader deity policy we appreciate them taking time to visit us today. you will hear from senator grassley today and democratic leader policy tomorrow we have a series of questions and get the perspectives of the
democratic side of the aisle as we foster better relationships so we will ask governor branstad if he'll do that. >> chuck grassley is a dear friend of mine i met him when i was a student at university of iowa in my family were democrats in the friend said republicans are not as bad as your parents told you will you come to this college republican meeting in the young state representative grassley was the speaker and that was in 1966 and 1972 we ran for the legislature by that time chuck grassley was already one of the leaders of the legislature the chairman of the appropriations committee
don't move forward if texas' third juror judge made a lot of progress in criminal justice reform. the issue i want to visit is be opioid crisis. the rapid rise of drug addiction is taking a devastating toll it is driven by the abuse of prescription and opioids and here in iowa the destructive epidemic divans a comprehensive response whether 43,000 deaths per year or 129 americans dying every day from overdoses we don't need statistics to
tell us about the catastrophe. we only need to listen to the people of our states. i hear from my wins all the time just like i am sure you hear from your constituents about real-life examples how this epidemic is coming home. i heard the story of a nurse in davenport in 2011 she lost a son to an accidental heroin overdose. and she now speaks out around my state for the need for expanded treatment options for those with substance abuse disorders for advocating for increased access and as congress recently took on the important task of confronting this epidemic is
a commitment to dealing in the all encompassing way. the comprehensive addiction and recovery act to address the open a crisis in a comprehensive way by authorizing almost $900 million over five years for prevention and rest assured current senate appropriation bills are poised to more than double funding for the epidemic since republicans took control of the senate. as funding for this crisis continues to rise, but this bill will serve as a blueprint for how to attack the scourges of addiction. the process begins when i convened a hearing on
attacking the oil deal laid epidemic they heard from arrange a states a stakeholders' it who told us about the excellent success of his programs in vermont and the chief of police and then head of the rhode island teachers -- largest opioid center in the also heard from a treatise young woman from ohio who lost her daughter to a heroin overdose and and does the bill where does with to the process i shape the bill in ways that our beneficial to my state in your state because rural areas seem to be left out of consideration to often.
i will mention a couple of items a fixed portion of the funds for the first responder access is set aside for much of iowa to emergency health care in four states that have other types of drug abuse problems those grants created by the bill are also available in addition to opioid another part of the bill is the drug takeback program they take them or steal them from friends and relatives of the federal initiative to allow patients to safely dispose of old gore and use medication and so they all fall into the hands
potentially leading to a reduction. over 27 tons have been collected to be disposed of safely my a state of iowa has a similar take back program that is expanding very rapidly anything we can do. finally the bill incentivizes and strengthens the use of that prescription and drug monica reing programs that is so beneficial especially the drug shopping for opioid. care was met with widespread praise and support it was called a monumental step forward. almost 250 advocacy organizations was in support
of the bill including a critical access ltd. is adopted and that congress can sadek passed legislation to save lives the republicans and democrats work together and to with state and local officials sometimes washington returns in and takes it back every student succeeds act i knew of a question on that subject i would address that as a problem in the future before you ask questions i asked my staff to put together a have fighting
sioux bows to read to you as were iowa works with us and gives disinformation way back in 79 or 9798 it includes the medicaid reconciliation act the medicaid director of iowa came to washington d.c. for several days with the massive amounts of information on how to make the program reform to serve the purpose. in to be representing i
don't know what organization may be the governors' association but working with the conference committee on that issue in the for this judicial committee i had a field hearing in des moines non method used we had a lot of testimony from maya ruins to pass the kingpin enact in the trans national drug-trafficking act as senator feinstein did i worked on said drugs are told us about the patient satisfaction surveys that the medicare payments that the opioid the views led to senator feinstein writing to the center for medicare and
medicaid services to announce a proposal to remove survey paid management questions. the iowa department of economic development came to us about a statute for a longer lease terms and certification indebted stage so there could be additional economic opportunities in this state officials to retain i was business with there were mergers between dow ended dupont and the state human trafficking coordinators work very closely with us as the first bill to come into committee it was called justice for victims of trafficking act signed by the president 14
months ago in that testimony was very helpful. i hope i didn't take too much of the time. [applause] >> we know how busy your schedule is we do have for five questions with those initiatives that we talk about finding solutions we understand a couple of various with the fast act the opportunity to help energize bills with the next congress where governors can lay the groundwork to get
the of bills passed with the next congress. >> for sure on tax reform with the state income-tax tied in with the federal income tax because tax reform that the federal level cannot help but affect the increase or decrease of taxes coming into the federal treasury, it depends on who was elected president there could be some changes to obamacare. in we need to know how that impacts on your state. and the transportation bill which is necessary but only has the funding for three years for pressure on congress to make sure at that level where we are now
now, into put pressure on to be sure that is fully funded. and when it comes to terrorism is more of a federal problem as fairly successful as it has been and prosecuted the we had five bad instances to which the fbi has some aversion to cooperating with local police. that is something you ought to be concerned about assuming that you feel that it is an issue and things of
that nature. that is where i would suggest, way to. there is another one of the higher education act is up for authorization it should have been this year or the year before to spend most of the time but i take there are two things that they need to think about with higher education reauthorization. it sounds popular that people -- in massive numbers of 28 private colleges, think in terms of letting congress know the impact of that policy and i
have not heard any of the candidates for both republicans said democrats if there is every issue to have a negative impact that something i have learned that kids have $29,000 for the border rand of books why because there is a federal law the university has to tell us everything you can borrow and presumably they borrow more than they need. so i have the bill that they do not to advise them of every dollar then four years before they graduate they
let their major in what the job will pay if they get it under their major so they know before they borrowed too much money to pay off their debt. that is another example of something i've learned from my i was people that contacted me in washington d.c.. i will stop there. >> governor branstad has a question. >> first of all, senator grassley, thinks for the way you work so well with the different departments it agencies and state government you go to every county every year listening to your constituents and we appreciate that collaboration we have had with you. you mentioned tax reform and that kemper hands of tax reform obviously we would
like to see intergovernmental cooperation as the deal with that because what congress does on tax reform will impact the state and local governments with their ability to finance various projects. as you look at that, we would be interested howdah governors can work closely with you to make sure the comprehensive tax reform that we hope happens in the near future doesn't preempt the states to have that flexibility to do what they need to do to be competitive >> first of all, i don't think that tax reform you have to worry about the tax resumption for states in in the municipalities going away. that is one of the two things are a handful since
will be affected if any of you see that differently i would like to hear from you. >> the other one is more of a process and i don't have any advice to tell you just you know, it's a problem than i was chairman of the finance committee or the ranking member i found when you try to reach a bipartisan compromise in the house they don't have to as long as republicans agree bed in the senate with 54 of one party doesn't matter you have to get 60 votes to get things done unless it is done on reconciliation it is difficult to do it that way because the rules are so precise. but when you sit at a table with republicans than
democrats to reach agreement i have to confess that not very often or not at all does position or the impact on states get much attention because it is so darn difficult to work to get a bipartisan agreement if you don't get a you don't get anything done so that is the necessity i don't have any of vice i don't have any. [laughter] but be aware and be active in civic we had a great trip to iowa we appreciate the hospitality one of our big issues is the cybersecurity threats so we're working together to put a platform to gather every four seconds we have an attack 53 million already some above your thoughts how you think at the gubernatorial level
could work closely to come up with a comprehensive plan to work with the federal government and also your thoughts of the marketplace fairness act. >> that is one that has a more political component bennett has a substance though i will say something that is facetious and i don't tell you that ahead of time you'll recognize it because i am so serious. i know it is a problem and a growing problem now this is where to buy from outside the state on the internet? here is where we are. me be 12 or 15 or those% of the sales are that way
congress and say they'll do something in this is what drives this thing in washington d.c. more than anything else. most republicans hate to be tagged with a tax increase. but there are organizations in washington in is more of a political issue because it is hard not to justify the fact we have a court decision going back to 1991 or '92 that states can touch this and sold many states give so much of their revenue from sales tax but i
don't know how bad this situation has to get before common sense will overrule the political scene maybe you say never but i think it does eventually so i don't have much of an answer i'm sorry. >> cyber. yes. i read since i spent an 60% death my days in your state i ought to know exactly what you are doing but i read about your program on cybersecurity i think i would neil it down from the standpoint of what congress has already done it took four years and it hasn't done enough but it was very difficult to get it done because the private sector withederal cooperation part of that is put together
so what we need to accomplish in one area it is successful legislation but it is not enough. so what you are up to with the leadership is very important this is something that can be done by this states it is federal and state and private partnerships so you lead the way in that area is very helpful and i think there are some people that feel we should do nothing that is not an option because we will all be affected by this and so much of it comes with utilities and water systems and anything else that is cybercriminal local and state governments are very
much involved so we've got to work this out to protect our critical infrastructure and all i can say is we have to continue to work together various plans are out there but we have to do more than what congress has done and i don't know to what extent but if i recall the legislation we just passed it was more private and federal partnership to work out the sharing of information in private business was so concerned about their own intellectual property and we have that cooperation and we want businesses to tell us so that is the first that.
that we first recently authorized but not being used in a directed manner. i suggested to you based upon what you know, about a 56% increase of what we authorized that there will be an increase for next year. as soon as the bill is signed by the president. >> talk about the oscar joe of drug abuse -- the scourged only 14 had sent to all in their system which is the synthetic version of heroin. this year it is expected to
be 170 will die as a result. a thing that can be done is a synthetic alternatives can be extremely important because it is packaged with heroin or as a replacement those think it is something that a portion of it is five times the strength of heroin but it is finding its way to the editor states as well as. >> now there is a task force set up in eastern iowa but
still they consider methamphetamine to be the main problem. >> the last question brian was called back for divergency better revolves around flexibility the states like to have flexibility as we implement different programs of though one size fixed -- fits all mentality because we don't really trust the states to do it correctly is seems to be a lack of trust i understand that black of accountability but what can we do to work with congress in washington? it needs to be fair and get
past of the lack of trust. i would not back away from the word accountability i hope i never one that i said don't trust the states personally for cry have heard others say otherwise so i don't dispute that i just don't want to fall into that category. what i would do right now is one example the secondary education and it called every student succeeds elementary in in the education i am not on that
committee for gifted and talented education i didn't have input into that but this is what i know is the bipartisan bill as i reflect to you the thinking of senator alexander best expressed that this is the biggest the regulation of education policy ever if you consider the last 40 years as a takeover education. and the national school board so what you are asking for is maximum return to the states in the federal law
based not only on the tenth amendment but based upon the fact that this country is so heterogeneous is in our population you cannot make policy in washington d.c. that it's in the york like des moines nine was so what we see now is a looks like the secretary of education is looking for excuses or wiggle room to continue those strict regulations. i think we even sent a letter to him the key is now looking at laterite but the next several years